SCA is focused on core business, strategic priorities and digital transformation in a challenging market, according to CEO John Kelly.
"All About Audio" is the focus as the company continues “active” negotiations with several parties on selling SCA’s television assets.
“We expect to be able to meaningfully update our shareholders in the coming weeks as to the progress of these sale negotiations,” Kelly said.
He told shareholders at the broadcaster’s AGM that the company now has positive operating momentum.
“That momentum is already showing signs of improved financial performance and will soon start translating and transforming into stronger financial performance and results,” he said.
This transformation can be seen in the improvement in results for the second half of the 2024 financial year, with EBITDA growth of 6% and audio EBITDA growth of 8%, he said.
Total audio sales in the December quarter were pacing for growth consistent with the September quarter.
In its latest market update, SCA posted a 1.5% lift in revenue to $122.3 million in the September quarter with digital audio revenue leading the charge in a short advertising market.
Total audio revenue was up 4.8% to $100.4 million, driven by growth of 48.2% in digital and 1.1% in broadcast radio.
Both metro radio and digital audio have delivered three consecutive quarters of share growth.
The company has a tight grip on costs. The current financial year is expected to come in below 2024 costs of $308.4 million.
The business transformation program has permanently removed more than $40 million from SCA’s cost base.
“We have been growing metro radio revenue share consistently since December 2023,” said Kelly.
“This revenue comes to SCA because we are the audio company which dominates the audiences that matter. We have been leading the metro radio 25 to 54 demographic for 27 consecutive surveys.”
Kelly said advertisers want certainty, clarity and compelling content.
“They are willing to pay a premium to connect their messages to targeted and addressable audiences with measurable attribution.
“We already have compelling evidence that this is delivering for us, and for our advertisers.”
Digital revenue grew 57% in the six months to June, coinciding with the launch of the LiSTNR AdTech Hub.
Kelly said the Ad Tech Hub is now included in more than a third of LiSTNR’s digital audio campaigns.
“Beyond our compelling content and our advancing technology-based offerings, our people are our power,” he said.
“And they are what makes SCA one of Australia’s leading media companies. We are implementing processes to ensure our people are happy, productive, engaged and working towards our business transformation targets.”
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